63 64 65 66 67 68 69 and tangible property] in Blätter für Genossenschaftswesen, Wiesbaden 1960; H Michel, Eigentumspolitik, Voraussetzungen und Wirkungen aus psychologischer Sicht [Policy of Property Formation, a Psychological View on its Prerequisites and Effects], Tübingen 1962 B Wissmann, Die sogenannte ‘Zinsernpflndlichkeit’ der deutschen Sparer [The So-called ‘Sensitiveness to Interest Rates’ of the German Savers], Berlin 1961 G Schmölders, Die Konjunkturpolitik der ‘Moral Suasion’ [The cyclical policy of ‘Moral Suasion’] in Wirtschaftsfragen der freien Welt, Festgabe für Ludwig Erhard [Economic Problems of the Free World, Commemorative Publication for Prof Ludwig Erhard], Frankfurt/M 1960; G Schmölders, Wirtschaftspolitik mit dem Zeigefinger [Economic Policy with a Raised Finger] Der Volkswirt, Frankfurt/M 1960; H Siegert, Währungspolitik durch ‘Seelenmassage’? [Currency Policy through ‘Mental Massage’?] Frankfurt/M 1963 G Scherhorn, Bedürfnis und Bedarf [Need and Demand], Beiträge zur Verhaltensforschung [Contributions to the Research on Behaviour], Berlin 1959, vol 1; Verhaltensforschung und Konsumtheorie [Research on Behaviour and Theory of Consumption] in Schmollers Jahrbuch [Schmoller’s Year-Book], Berlin 1960 G Schmölders, Der Beitrag der anthropologischen Wissenschaften zur empirischen Sozialökonomik [The contribution of the anthropological sciences to empirical social conomics], Forschungsbericht für die Deutsche Forschungsgemeinschaft [Research report for the German Research Council], unpublished, Bad Godesberg 1960 H Lierz, Psyche und Eigentum [Psyche and property], med Dissertation, Cologne 1957 G Schmölders, Der wirtschaftende Mensch als soziales Wesen, Merkur 1960; Volkswirtschaftslehre und Psychologie [Economics and Psychology], Berlin 1962 G Schmölders, Das Problem der Prognose im Wirtschaftsleben [The problem of prognosis], Universitas, no Stuttgart 1963; H Kreikebaum and G Rinsche, Das Prestigemotiv in Konsum und Investition [The Motive of Prestige in Consumption and Investment], Beiträge zur Verhaltensforschung [Contributions to Research on Behaviour] Berlin 1961, vol 4; F Rexhausen, Der Unternehmer und die volkswirtschaftliche Entwicklung [The Entrepreneur and Economic Development], Berlin 1960; G Schmölders, Hypothese und Wirklichkeit des Käuferverhaltens [Hypothesis and reality of the behaviour of the buyer], Schweizer Monatshefte, no (1958) The Private Household A Freiherr von Knigge, Über den Umgang mit Menschen [On Dealing with People], 3rd edn, Hanover 1790, quoted from the selection by Iring Fetscher, p 95 5 10 11 12 13 14 15 16 17 18 19 20 21 Geldwert der Hausfrauenarbeit [The monetary value of women’s work in the home], Switzerland, Zeitschrift für Volkswirtschaft und Statistik, vol 95 (1959), pp 117–21; H Fürst, Einkommen, Nachfrage, Produktion und Konsum des privaten Haushalts in der Volkswirtschaft [Income, Demand, Production and Consumption of the Private Household in the Economy], Stuttgart und Cologne 1956, pp 83 et seq H Sharp and P Mott, Consumer decisions in the metropolitan family, Journal of Marketing, vol 21 (1956/57), pp 149 et seq.; H Brown, The automobile buying decision with the family, in Nelson H Foote (ed.), Household DecisionMaking, New York 1961, pp 194 et seq Brown, Automobile buying decision, p 196 J.N Morgan, Household decision-making, in Foote (ed.), Household DecisionMaking, p 83 and the literature listed there E.N Wolgast, Economic decision-making in the family, Journal of Marketing, vol 23 (1958/59), pp 151 et seq R Ferber, Factors Influencing Durable Goods Purchases, Urbana, Ill., 1955, p 94 M.E Olsen, Distribution of Responsibility within the Family as Related to Social Stratification, Grinnel College, 1956/57, p 37 Intermarket: Das Verhalten des Verbrauchers [Consumer Behaviour], Düsseldorf 1958, Set of Tables A, Table 330/333 On the different notion of thrift in men and women, cf Schmölders, Psychologie des Geldes [Psychology of Money], Reinbek bei Hamburg 1966, pp 71 et seq An assessment by interviewees of the thrift demonstrated by their partner, recorded using a series of prompt pictures, similarly found a large degree of parallel responses between husband and wife On the psychological conflicts of ‘injurious’ spending of money in young marriages, cf Schmölders, Psychologie des Geldes [Psychology of Money], pp 107 et seq G Engelhardt, Die Bedeutung des Einkommens als ein Kennzeichen der sozialen und der wirtschaftlichen Situation des privaten Haushalts [The importance of income as an indicator of the social and economic situation of the private household], unpublished degree thesis (Seminar f Finanzwissenschaft), Cologne 1962, pp 40 et seq Ibid., pp 73 et seq Ibid., pp 52 et seq G Katona, Das Verhalten der Verbraucher und Unternehmer [Psychological Analysis of Economic Behavior], Tübingen 1960, table on p 186 A Marshall, Principles of Economics [Book IV, Chapter VII, the editors] Knigge, Über den Umgang mit Menschen [On Dealing with People] We recorded agreement with the following statements: essential part of a good character It’s better to wait two hours for the next bus than to take a taxi It’s better to miss seeing a film than to buy a seat in an expensive box You should think thrice before spending anything, save as much as possible, and feel relaxed about denying yourself some things in life 66 69 60 65 14 14 22 Cf on this Schmölders, Psychologie des Geldes [Psychology of Money], Reinbek bei Hamburg, pp 37 et seq 23 Cf Günter Schmölders, Der Umgang mit Geld im privaten Haushalt, Berlin 1969, pp 121 et seq 24 E Egner, Der Haushalt Eine Darstellung seiner volkswirtschaftlichen Gestalt [The Household A Representation of its Economic Face], Berlin 1952, p 177 25 G Katona, Der Massenkonsum [Mass Consumption], Düsseldorf 1965, passim 26 E Cumming and W.E Henry, Growing Old The Process of Disengagement Basic Books, New York 1961 27 Cf on these questions D Fricke, Einkommen und Anspruchsniveau [Income and Level of Needs]; also Katona, Der Massenkonsum [Mass Consumption] 28 For a detailed treatment of historical developments in money use and monetary theory see G Schmölders, Geldpolitik, 2nd edn Tübingen and Zürich 1968, Chs I and II 29 G.F Knapp, Staatliche Theorie des Geldes, 3rd edn, Munich and Leipzig 1921 30 R.L Teigen, An aggregate quarterly model of the U.S monetary sector 1953– 1964, a paper presented to the Conference on Targets and Indicators of Monetary Policy, University of California, April 1966, p 31 A Müller, Versuche einer neuen Theorie des Geldes, Leipzig and Altenburg 1816; also see W Andreae, Geld und Geldschöpfung, Frankfurt-Main 1952, p 273 32 T Parsons, The Social System, New York 1964, p 12; also T Parsons, Essays in Sociological Theory, New York 1965, passim; W.F Whyte, Money and Motivation, New York 1955, Ch 33 H Rittershausen, Bankpolitik, Frankfurt-Main 1956, p 104 34 G Schmölders, Gutes und schlechtes Geld [Good Money and Bad Money], Frankfurt-Main 1968, p 11 35 B.F Skinner, Science and Human Behavior, New York 1965, p 12 36 Ibid., p 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 York 1967; K Deutsch, The Nerves of Government, New York 1967; P.G Herbst, A theory of simple behavior systems, I and II, Human Relations, vol 14 (1961); Newcomb et al., Social Psychology; T Parsons and E Shils (eds), Toward a General Theory of Action, New York 1962 E Mueller, Effects of consumer attitudes on purchases, American Economic Review, vol 47 (1957); Consumer attitudes: their influence and forecasting value, in National Bureau of Economic Research (ed.), The Quality and Economic Significance of Anticipations Data, Princeton 1960; Ten years of consumer attitude surveys: their forecasting record, Journal of the American Statistical Association, vol 58 (1963) As for the concepts ‘habitual behaviour’ and ‘problem-solving behaviour’, see G Katona, Psychological Analysis of Economic Behavior, New York 1951, Part I G Katona et al., Survey of Consumer Finances, Ann Arbor, available for 1960–67 Katona, op cit., and Mueller, op cit Schmölders, Psychologie des Geldes, pp 37–42 Ibid., pp 47–9 Ibid., pp 41–53 Ibid., pp 54–6 J.M Keynes, The General Theory of Employment, Interest and Money, London 1936, Chs 13 and 15 V.F Wagner, Geschichte der Kredittheorien, Vienna 1937, p 460 E Schneider, Einführung in die Wirtschaftstheorie, Part III, Tübingen 1967, pp 47–67 ( Kr = the limit of any additional credit expansion by credit institutions based on their surplus reserves ( Z) Z = the surplus reserves in the credit institutions comprising cash and accounts with the central bank r = the rate of minimum reserves the credit institutions are held to maintain is fixed by the central bank c = the amount of central bank money that is transferred to and retained in the non-banking sector at each stage of the credit expansion process.) The German postal system offers a low-interest savings account as well as low-fee cheque service Newcomb et al., Social Psychology, Ch Schmölders, Psychologie des Geldes, pp 64–8 Report of the Committee on the Working of the Monetary System, London 1959, p 132 Ibid., p 130 Schmölders, Psychologie des Geldes, pp 70–1 Ibid., pp 70–6 For a short description of tree analysis, see p 242 [p 111 of this book, eds] The data deck contained multiple-punched columns, the conversion of which into machine-readable form proved too thorny a problem to be achieved in time The data used stem from the 1965 Survey of Consumer Finances, Project 741 The particular tree program used is an adaptation formulation of theoretical models.’ 62 G Katona et al., 1965 SCF, Ann Arbor 1966, pp 29–32 63 Ibid., p 31; see also Table 2-10, p 44 64 G Schmölders, Umgang mit Geld als Forschungsaufgabe, in H.E Büschgen (ed.), Geld, Kapital und Kredit, Stuttgart 1968, pp 36–7 65 F.T Juster, Anticipations and Purchases: an Analysis of Consumer Behavior, Princeton 1964, p 66 G Simmel, Philosophie des Geldes [The Philosophy of Money], Munich 1930, pp 164 et seq 67 I Fisher, The Money Illusion, New York 1928 68 Katona et al., op cit., p 248 69 Das Ausmaß der Geldentwertung seit 1950 und die weitere Entwicklung des Geldwertes, Monatsberichte der Deutschen Bundesbank, March 1968, p 13 70 See Schmölders, Geldpolitik, p 71 71 I Fisher, Feste Währungen [Stabilised Money], Heidelberg 1948, p 24 72 See Juster, Anticipations, p 73 J Sonquist and J.N Morgan, The Detection of Interaction Effects, Ann Arbor 1964 74 General Purpose Systems Simulator III, White Plains, New York 1965 75 The question was: ‘Can you tell me from this list, which durables your household owns?’ (For list of durables, see Appendix.) 76 For this purpose the question was: ‘In your opinion, which durables you still need to be able to say: “Now I have an appropriate standard of living”?’ 77 Describing the changes in the standard of consumption during the life cycle, the variables concerning age and size of the households are dealt with separately in order to be able to prove a possible specific influence of one of these factors on the levels of consumption and aspiration 78 This sentiment of saturation usually exists only temporarily: ‘But the feeling of saturation may be temporary, at least in the absence of repeated severe shock’ (E Katona, Consumer behavior: theory and findings on expectations and aspirations, American Economic Review, vol 58, no (May 1968), pp 19–30 [p 21]) The Entrepreneur G Hederer, Die Motivation von Investitionsentscheidungen der Unternehmung Eine verhaltenswissenschaftliche Studie, 1971 Ibid., p 102 Even Erich Schneider, prominent supporter of rational theory, acknowledged in his early works of 1944: ‘In most cases it is these imponderables which are decisive for the choice between two or more investment options’ (E Schneider, Investering og Rente, Copenhagen 1944) 6 Meinolf Dierkes, Der Beitrag des französischen Mittelstandes zum wirtschaftlichen Wachstum, 1969 Cf F Rexhausen, Der Unternehmer und die wirtschaftliche Entwicklung, Berlin 1960 W Stark, Die Wissenssoziologie, 1960, p 221 C.f G Bombach, Probleme der Bildungsökonomik, presentation to the Wissenschaft und Wirtschaft discussion group on 2.12.1963; further references here 10 The only country whose production statistics allow accurate allocation of annual national product growth to the contribution of the so-called ‘economic factors’ – labour and capital investment on the one hand and the ‘imponderables’ – industriousness, intelligence, technical knowledge and organization skill on the other, over a period of more than 50 years, is Norway It has emerged here that on average the national product for the years from 1900 to 1955 rose by 0.2 per cent per per cent as a result of increased capital investment expenditure and by 0.75 per cent for each per cent of increased expenditure on labour, but that on the other hand the ‘human’ forces in economic progress mentioned rose by 1.8 per cent per per cent as a result of improved performance Cf Odd Aukrust in the February issue of the Productivity Measurement Review published by the OEEC, 1959 11 W Eucken, Grundlagen der Nationalökonomie, 6th edn, Berlin 1950, p xvi 12 Cf H Wiesbrock, Über Ethnocharakterologie, Wesen – Forschungsprogramm – Methodik, Kölner Zeitschrift für Soziologie und Sozialpsychologie, vol 9, no 4, (1957), p 552 13 D.C McClelland, The Achieving Society, Princeton 1961 14 M Weber, Die protestantische Ethik und der Geist des Kapitalismus, in Gesammelte Aufsätze zur Religionssoziologie, Tübingen 1928 15 Cf E.E Hagen, On the Theory of Social Change, Homewood, Ill., 1962, pp 28 et seq Psychology of Taxation and Public Finance A Labriola, Sul Principio regulatore della finanza pubblica, Naples 1902, speaks of the ‘arbitrariness and inconsistency’ in the ruling power of political authorities A Puviani, Teoria della illusione finanziaria, Milan 1903 J Swift, An answer to a paper called ‘A Memorial of the Poor Inhabitants, Tradesmen, and Labourers of the Kingdom of Ireland’, 1728 G Jêze, Le Budget, Paris 1910 A Pigou, A Study in Public Finance, London 1928 H.M Groves, Empirical studies of income tax compliance, National Tax Journal, December 1958, pp 291–301 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 percentage addition (10–11 per cent) to the general income tax of the state called church tax G Schmölders, Die Politiker und die Währung [The Politicians and the Currency], Frankfurt M 1957 H Lanfenburger, Traité d’Économie et de Législation Financière, Paris, 1954 See also H Lanfenburger, Théorie économique et psychologique des Finances Publiques, Paris 1956 P.L Reynaud, Récessions et seuils économiques, Revue Économique, November 1957 E.g W.J Behr, Staatswirtschaftslehre, Leipzig 1822 J Swift, ‘An Answer to a Paper Called a Memorial of the Poor Inhabitants, Tradesmen, and Labourers of the Kingdom of Ireland’ (1728), in Jonathan Swift: Irish Tracts, Herbert Davis (ed.), Oxford, pp 17–25 W Gerloff, Steuerwirtschaftslehre [The economics of taxation], in Handbuch der Finanzwissenschaft, 2nd edn, vol 2, Tübingen 1952, p 325 E Grossmann, Die Finanzgesinnung des Schweizer Volkes [The financial ethos of the Swiss], Zeitschrift für schweizerische Statistik und Volkswirtschaft, 1930 E Grossmann, Gedanken über Finanzpolitik in der reinen Demokratie [Reflections on Tax Policy in a Pure Democracy], Berne 1948, p 18 B Strümpel, Sind die Schweizer steuerwilliger? [Are the Swiss more prepared to pay tax?] in Blick durch die Wirtschaft dated 25.3.1964 Also published as Der Schweizer als Steuerzahler [The Swiss as taxpayers], Finanzarchiv, NS, vol 24 (1965), pp 244 et seq Cf G Schmölders, Finanz- und Steuerpsychologie [Psychology of Public Finance and Taxes], Reinbek 1970, pp 53 et seq G Schmölders, Unmerkliche Steuern [Imperceptible taxes], Finanzarchiv, vol 20 (1959), pp 23–34 E Schueller, Réfutations au rapport de la commission de réforme fiscale sur la taxation de l’énergie [Responses to the Report from the Commission for Tax Reform on the Taxation of Energy], Paris 1952 P.L Reynaud, La Pression Fiscale Psychologique et le Dynamisme des Producteurs, Finanzarchiv, vol 19 (1958/59), pp 382 et seq Schmölders, Unmerkliche Steuern W Vocke, Die Abgaben, Auflagen und die Steuer vom Standpunkt der Geschichte und der Sittlichkeit [Contributions, Levies and Tax, from the Viewpoint of History and of What is Socially Acceptable], Stuttgart 1887, p x I Jastrow, Gut und Blut fürs Vaterland [Property and Blood for the Fatherland], Berlin 1917 J Popitz, Der wirtschaftende Mensch als Steuerzahler, Vierteljahrheft für Finanzund Steuerrecht, vol IV, Berlin 1930; O Veit, Grundlagen der Steuermoral [Principles of tax morale], Zeitschrift für die gesamte Staatswissenschaft, vol 83, pp 317 et seq.; G Schmölders, Steuermoral und Steuerbelastung [Tax Morale and Tax Burden], Berlin 1932 27 28 29 30 31 32 33 Zeitung (FAZ), 17.08.63; F.H Rosenstiel, Die Steuermoral in Amerika, FAZ, 20.08.63; L Singer, Die Steuermoral in Brasilien, FAZ, 26.08.63; W.L Hudson, Wie steuerehrlich sind die Engländer?, FAZ, 03.09.63; G.L Leszcynski, Die Steuermoral in Indien, FAZ, 10.09.63; M Wiebel, Die Steuermoral in Italien, FAZ, 28.09.63; H Konitzer, Mit der Steuermoral in Österreich zufrieden, FAZ, 07.10.63; W van den Wyenbergh, Die Steuermoral in der Schweiz, FAZ, 02.11.63; P Bengt, Die Steuermoral in Schweden, FAZ, 15.10.63; K Jetter, Die Steuermoral in Frankreich, FAZ, 12.11.63; L Bauer, Die Steuermoral in Spanien, FAZ, 19.11.63; O Brachfeld, Die Steuermoral in hispanischen Ländern, FAZ, 07.12.63; G Schmölders, Die Steuermoral der Deutschen, FAZ, 11.12.63; G Schmölders, Wie steuerehrlich sind die Deutschen?, FAZ, 25.01.1964; J Rivoli, Vive l’impôt, Bourges 1965; G Schmölders and B Strümpel, Vergleichende Finanzpsychologie – Besteuerung und Steuermentalität in einigen europäischen Ländern [Comparative psychology of public finance – taxation and tax mentality in some European countries], Akademie der Wissenschaften und der Literatur, Abhandlungen der Geistesund Sozialwissenschaftlichen Klasse, no 4, 1968; A.G Davies, P Vink, and E Krings, De Verhouding tussen Inspecteur en Contribuable, Alpfen am Rhein 1965; G Schmölders, Steuermentalität [Tax mentality], Institut für Finanzwissenschaft und Steuerrecht, no 50, Vienna 1967 ‘En Angleterre, le terme “honorable obligation de payer l’impôt” n’est pas un slogan’ [‘In England, the phrase “honourable obligation to pay duty” is not an empty expression’], H Laufenburger, Aspects psychologiques des finances publiques, in Beiträge zur Geld- und Finanztheorie, Tübingen 1951, p 53 Quoted in Hudson, Wie steuerehrlich sind die Engländer? Konitzer, Mit der Steuermoral in Österreich zufrieden Cf on this Schmölders, Finanz- und Steuerpsychologie, pp 53 et seq., and B Strümpel, Steuersystem und wirtschaftliche Entwicklung [The Tax System and Economic Development], Tübingen 1968; B Strümpel, Steuermoral und Steuerwiderstand der deutschen Selbständigen [Tax Morale and Tax Resistance by German Independent Professionals], Forschungsberichte des Landes Nordrhein-Westfalen No.1682, Cologne and Opladen 1966 G Schmölders, Organische Steuerreform [Organic Tax Reform], Berlin 1953, p 21 Reg.-Dir Dr Terstegen, Besonderheiten der Steuerstraftaten und des Steuerstrafrechts, insbesondere unter dem Gesichtspunkt einer Zusammenarbeit zwischen Finanzverwaltung und Kriminalpolizei, in Bekämpfung der Wirtschaftsdelikte (einschließlich der Korruption), Arbeitstagung im Bundeskriminalamt, Wiesbaden 1957, p 222 C.-F Graumann and W Fröhlich, Ansätze zu einer psychologischen Analyse des sogenannten Steuerwiderstands [Approaches to a psychological analysis of the phenomenon of tax resistance], Finanzarchiv, NS, vol 17 (1956/57), pp 418 et seq 35 36 37 38 39 40 41 42 43 44 45 46 47 48 in the Allgemeine deutsche Realencyklopädie für die gebildeten Stände, Leipzig: Brockhaus 1820, p 523) Cf G Schmölders, Allgemeine Steuerlehre [General Theory of Taxation], 3rd edn, Berlin 1958, pp 117 et seq.; Schmölders, Finanz- und Steuerpsychologie, pp 95 et seq F.K Mann, Die Finanzkomponente der Revolution, in Finanztheorie und Finanzsoziologie, Göttingen 1959, pp 143 et seq Terstegen, Besonderheiten der Steuerstraftaten und des Steuerstrafrechts , pp 217 et seq W Peres, Die Steuerhinterziehung im Spiegel der Rechtsprechung, Die Entscheidungspraxis des Amts- und Landgerichts Köln 1950–1959, Finanzwissenschaftliche Forschungsarbeiten, NS, vol 27, Berlin 1963 G Schmölders, Das Gerechtigkeitspostulat in der Besteuerung [The postulate of fairness in taxation], Finanzarchiv, NS, vol 23 (1964), pp 53 et seq (Commemorative Papers for F.K Mann) F.K Mann, Die Gerechtigkeit in der Besteuerung, Beiträge zur Finanzwissenschaft (Commemorative Papers for Georg von Schanz), vol II, Tübingen 1928, p 116 Thus, for example, recently F.A v Hayek, Wirtschaft, Wissenschaft und Politik [Economics, Academia and Politics], Freiburger Universitätsreden, Freiburg 1963, p 11 E Gutenberg, Zur Frage des Normativen in den Sozialwissenschaften [On the question of the normative in the social sciences], in Sozialwissenschaft und Gesellschaftsgestaltung, Festschrift für G Weisser, Berlin 1963, p 123 Th Keller, Mehr Steuergerechtigkeit [More tax justice], in Zukunftsausgaben in Wirtschaft, Gesellschaft, Zürich and St Gallen 1963, pp 213 et seq Mann, Die Gerechtigkeit in der Besteuerung According to Benjamin Lee Whorf ‘crypto-type’ is ‘a subtle meaning which is hard to comprehend Lying below the surface of words, which does not correspond to any actual word and which nevertheless can be shown by linguistic analysis to be a functionally important element in grammar’ (Sprache, Denken, Wirklichkeit, Hamburg 1963, p 116) F.K Mann, Steuerpolitische Ideale, Jena 1937 H.F Weston, Principles of Justice in Taxation, New York 1903; R Jones, The Nature and First Principles of Taxation, London 1914; F.K Mann, Grundsätze der Besteuerung [Principles of taxation], in Schmollers Jahrbuch, vol 50, 1926; F Neumark, Grundsätze der Besteuerung in Vergangenheit und Gegenwart [Principles of Taxation in the Past and Present], Wiesbaden 1965 ‘Negatively, the principle of universality is identical with the prohibition of tax discrimination undertaken on grounds other than the ability to pay, whereas as a positive term it says that all people who are able to pay taxes and to whom one of the statutorily-determined reasons for a tax obligation apply are called upon to pay tax, without regard to non-economic 50 ‘The principle of proportionality is, in terms of content, identical with the principle of taxation based on the individual’s ability to pay’ (Neumark, Grundsätze p 45); in other words, ‘the taxes to be paid by the individual should be of such an order that each person is restricted in his satisfaction of needs to the same degree’ (Haller, Die Steuern, p 39) The definitive determining variable for the scope of ability to satisfy needs is the benefit from one’s individual income, here comprising not only monetary income but also values in terms of leisure and assets etc (cf Haller, Die Steuern, pp 42 et seq.) This call for the same sacrifice from all those being assessed for tax can in turn be interpreted in three ways: N E − N E − St N E − N E − St (2) Equal proportional sacrifice N E dN E − St (3) Equal marginal sacrifice d E − St (1) Equal absolute sacrifice 51 52 53 54 55 56 Where E = income; St = amount of tax; N (E) = overall benefit (or satisfaction of needs) derived from income E (See on this R.A Musgrave, Finanztheorie, Tübingen 1966, pp 78 et seq.) For some time, people have generally called for the second of these concepts The ostensible intention behind this, of only concluding the necessity for a progression in the tax rate from the fact of a diminishing limit on benefit from income, in order to arrive at an equal relative sacrifice for those assessed, is however not achieved; A.J CohenStuart (Bijdrage tot de theorie de progressive inkamstenbelasting [Contributions to the Theory of Progressive Income Tax], The Hague) demonstrated as early as 1889 that with certain falling curves for limit of benefit, only a proportional or even a regressive tariff guarantees an equal relative sacrifice (Cf Haller, Die Steuern, pp 78 et seq.; H Haller, Bemerkungen zur progressiven Besteuerung und zur steuerlichen Leistungsfähigkeit [Observations on progressive taxation and on the ability to pay], Finanzarchiv, NS, vol 20 (1959/60), pp 35 et seq.) See K Tippelmann, Die Problematik der Vermögensteuer [The Problem of Net Worth Tax], Berlin 1963 Schmölders, Allgemeine Steuerlehre, pp 25 et seq G Schmölders, Die Politik und die Währung, Schriftenreihe zur Geld- und Finanzpolitik vol VI, Frankfurt (Main) 1959, p 42 Thomas Aquinas, in Ausgewählte Schriften zur Staats- und Wirtschaftslehre des Thomas von Aquin (Die Herdflamme, vol 3), Jena 1932, p 212 One recalls the observation by Abraham Lincoln ‘Public consent is everything; without public consent nothing can succeed, with public consent nothing can fail.’ Schmölders, Finanz- und Steuerpsychologie, pp 53 et seq 62 63 64 65 66 67 68 69 democracy’ for taxation to be transparent, since he shares W.E Channing’s view that ‘a free people ought to know what they pay for freedom’ See B Strümpel, Steuersystem und wirtschaftliche Entwicklung [Tax System and Economic Development], Tübingen 1968, and B Beichelt, B Bievert, J Daviter, G Schmölders and B Strümpel, Steuernorm und Steuerwirklichkeit, vol II, Cologne and Opladen 1969 B Strümpel, The contribution of survey research to public finance, in Alan T Peacock (ed.), Quantitative Methods in Public Finance, New York 1969 Still more conspicuous is the attempt of the German Federal Republic to induce large fractions of blue-collar workers to saving and capital formation by offering subsidies or tax allowances for special savings deposits Who are the people who have been induced to switch from a proletarian ‘living from day to day’ to the habit of acquiring monetary reserves? Studies of our Cologne Institute show that not the lower strata, i.e the unskilled workers were attracted by the premiums offered, but an upper group of blue-collar and a lower group of white-collar workers with incomes beyond the poverty level All such tax premiums as an instrument for influencing economic behaviour go at the expense of distributional equity; not the poorest or the most needy profit most from these measures but a group of people advanced enough to be amenable to monetary incentives A strategy leading to these dubious distributional consequences does not reflect an abandonment of the original policy goal of fighting poverty for humanitarian reasons Rather, it reflects a widening of the scope of welfare policy to new and, if you wish, less needy people as well as a widening of the strategy from pure income increases to more radical measures, such as education, training, mental rehabilitation and even asset formation For an instructive collection of evidence for this contribution, compare National Bureau of Economic Research, Foreign Tax Policies and Economic Growth, New York 1966 F Neumark, Grundsätze der Besteuerung in Vergangenheit und Gegenwart, Wiesbaden 1965, pp 27 f See K.M Kauffman, Income tax and economic development, National Tax Journal, vol 13 (1960), pp 141–62 and 252–69 B Strümpel, Sozioökonomischer Wandel und die Durchsetzbarkeit der Besteuerung, Finanzarchiv, NS, vol 25 (1966) The empirical data on which the subsequent paragraphs are based have been collected by the Cologne Centre in Empirical Economics (Forschungsstelle für empirische Sozialökonomik – Prof G Schmölders, University of Cologne) – with financial support of the Volkswagenwerk Foundation The sample covered a representative cross-section of the male urban population (1923 respondents) The services of DATA S.A., Estudios de Mercados Opinion, Madrid, in conducting the survey are gratefully acknowledged and literature quoted there 74 G.F Break, Income tax and incentives to work, an empirical study, American Economic Review, Sept 1957; Costanza Costantino, La tassazione del reddito e gli incentivi al lavoro, Archivio Finanziario; James N Morgan, Robin Barlow and Harvey N Brazer, A survey of investment, management and working behavior among high-income individuals, a paper presented at the Meeting of the American Economic Association, Chicago, December 1984; B Strümpel, Steuermoral und Steuerwiderstand der deutschen Selbständigen – ein Beitrag zur Lehre von den Steuerwirkungen, Cologne and Opladen 1966 75 Benjamin Higgins, Postwar tax policy, in Carl Shoup and Richard Musgrave (eds), Readings in Public Finance, New York 1959 76 G Schmölders, Der Beitrag der Verhaltensforschung zur Theorie der wirtschaftlichen Entwicklung, in Norbert Kloten et al (eds), Systeme und Methoden in den Wirtschafts- und Sozialwissenschaften, Tübingen 1964 77 Walt W Rostow, The Stages of Economic Growth, Cambridge University Press, 1960, p 52 78 Walther G Hoffmann, Stadien und Typen der Industrialisierung, Jena 1931, p 104; and Rostow, Stages of Economic Growth 79 Albert O Hirschman, The Strategy of Economic Development, New Haven 1958, pp 100 et seq 80 Everett M Rogers, Diffusion of Innovations, New York, London 1962 81 W.G Hoffmann, Industrialisierung, in Handwörterbuch der Sozialwissenschaften 82 Wolfgang F Stolper, Zölle [Customs duties], in Handwörterbuch der Sozialwissenschaften 83 Schmölders, Der Beitrag der Verhaltensforschung 84 See note 10 85 Günter Schmölders, Die Überwindung von Widerständen der Wirtschaftssubjekte, in H Seraphim (ed.), Probleme der Willensbildung und der wirtschaftspolitischen Führung, Berlin 1959 86 Compare e.g Gottfried Bombach, Wirtschaftswachstum [Economic growth], in Handwörterbuch der Sozialwissenschaften, vol 12, pp 795f 87 A.K Cairncross, The place of capital in economic progress, in H Dupriez (ed.), Economic Progress, Lovain 1955 88 Alan Williams, Tax policy – can surveys help? Political and Economic Planning London, vol 32, No (494) (March 1966) Psychology and Macroeconomics The German term Buchgeld or Giralgeld has not found, so far, an adequate translation in English; payment by cheque is only part of this wider concept, including all forms of cashless transfers of money by banks, postal money order or otherwise German edition, Jena 1931 Knut Wicksell, Geldzins und Güterpreise [Interest and Prices], Jena 1898 Albert Aftalion, Die Einkommenstheorie des Geldes und ihre Bestätigung durch die gegenwärtigen Phänomene, in Die Wirtschaftstheorie der Gegenwart, Vienna 1932 Ludwig V Mises, Theorie des Geldes und der Umlaufmittel [The Theory of Money and Credit], Munich 1912 Otto V Zwiedineck-Südenhorst, Die Einkommensgestaltung als Geldwertbestimmungsgrund, Schmollers Jahrbuch, 1909, p 160 10 Alvin H Hansen, Monetary Theory and Fiscal Policy, New York 1949 11 Irving Fisher, The Money Illusion, New York 1928 12 Irving Fisher, Our unstable dollar and the so-called business cycle, Journal of the American Statistical Association, vol XX (1925), pp 179 et seq 13 Otto Veit, Volkswirtschaftliche Theorie der Liquidität [Economic Theory of Liquidity], Frankfurt 1948 14 E.V Morgan, The ownership of capital and monetary policy, The Three Banks, no 42 (1959) 15 Report of the Committee on the Working of the Monetary System, London 1959, p 133 16 Italics mine 17 Andreas Paulsen, Liquidität und Risiko in der wirtschaftlichen Entwicklung, Frankfurt and Berlin 1953 18 P.L Reynaud, Recessions et seuils économiques, Revue économique, no (1957), pp 1032 et seq 19 Wesley C Mitchell, Business Cycles, Berkeley 1913; German edition (by Altschul), Bonn and Leipzig 1931 20 Randolph Burgess, The Reserve Banks and the Money Market, New York 1927; German edition (by H Schacht), Berlin n.d 21 G Schmölders, Geld und Kredit: Probleme der Wirtschaftspolitik, Leipzig 1938, p 109 22 G Schmölders, Die Konjunkturpolitik der ‘moral suasion’, in Wirtschaftsfragen der freien Welt, Festschrift zum 60 Geburtstag von Ludwig Erhard, Frankfurt 1957, pp 282 et seq 23 Ibid., p 135 24 Eva Mueller, Effect of consumer attitudes on purchases, American Economic Review, vol 37 (1947); G Katona, Analysis of dissaving, American Economic Review, vol 39 (1949) 25 G Schmưlders, Ưkonomische Verhaltensforschung [Behavioural economics], Ordo-Jahrbuch III (1953), pp 203 et seq.; Beiträge zur Verhaltensforschung, Schriftenreihe im Verlag Dunker & Humblot, Berlin, herausgegeben von G Schmölders, vol ff (since 1959) added value, in manufacturing industry, 209 admiration, need for, 37, 139 age and consumption level, 132 and consumption standard, 130 and income expectations, 68 and mental attitude, 67 and psychology of saving, 100 and saving, 24 and thrift, 60 and wishes, 88 age–income combinations, and varying rates of saving, 117 agrarian society, 144–5 agriculture, tax compliance ratio, 160 alcohol, taxation of, alcohol prohibition, 2–3 alternatives, decisions on, 149, 151 American institutionalism, 34 anthropological sciences, 35 anticipatory variables, 119–20 aspiration and age, 132 and life cycle, 132 theory of level of aspirations, 134 versus saturation, 124, 125 aspiration levels and consumption standard, 124–35: items included in study, 126 definition of, 124 equipment level, 124 associations with taxes, 9, 189, 190 attitudes, 92 age and mental attitude, 67 change in, 146 and economic development, 147 to credit, 75 to entrepreneurs, 154–5 to money, 92–3: Freud on, 37 to saving, 24 and short-run consumer behaviour, 133 to tax, 158, 196–7: Germany, 187 to tax justice, 183 to value of money, 106–7 attitudinal differences, and monetary decisions, 101–2 attitudinal variables, 113–14 Automatic Interaction Detector, 123 bank accounts, 117 bank rate changes, 226–7 behaviour, and economic development, 144, 146 behavioural approach to monetary theory, 89–124 behaviour research, 27, 35 and forecasting of business trends, 216 behaviour theory concept, and economic growth, 141 ‘borrowing’, versus Schuldenmachen, 114–16 borrowing power, 223 Britain, tax system, 194 budget management, and saving, 88 business barometers, 213 business forecasts, 218 business liquidity concept, 223 and monetary policy, 227 business trends, surveys of consumer purchasing plans to predict, 216 Business Week, 215 calculation and subjective liquidity, 84 use by private households, 80–2 and wishes discussed, 86–7 Cambridge Rule, 42, 185 Canard Rule, 185 Capital, 154 246 Central Archive for Empirical Social Research, 39 central bank policy, 226 character traits of entrepreneurs, 148 and saving, 109 character types, and monetary decisions, 97 charitable donations of companies, 140–1 church tax, 161 citizenship, and tax, 165 civic duty, 8, 11, 12–13 Cologne Research Centre, 6, 39, 97, 126, 137, 141, 157, 193, 207 study on monetary dispositions, 97 companies, spending policy, 140–1 computers, and social science, 94, 96 conformity, 21, 23–4, 48, 146 constancy, 23–4 consumer behaviour, short term, and expectations and attitudes, 133 consumer durable goods, 83, 85–6, 216 ownership of, 124–5 prediction of sales, 217 consumer goods differences in ownership, 127–8 labour-saving products, 87 consumer purchasing plans, surveys to predict business trends, 216 Consumer Sentiment Index, 97 consumption prestige motive in, 138–9 taxes on, 168 ‘consumption function’, 214 consumption level, and age, 132 consumption patterns, 126 consumption standard and age, 130 and aspiration levels, 124–35: durable goods selected for research, 134–5 and life cycle, 129, 130, 132–3 and occupational groups, 126 and occupational groups and income, 127 and older people, 131 consumptive saving, 104, 105 credit, 61–2 attitudes to, 75 cross-sectional analysis, income in, 63–6 cross-sectional studies, 62, 122 cultural traditions, 147–8 currency, 90 currency image/reputation, 106, 120 debt levels, and income expectations, 70 decision making, in parliament, 161–2 decision planning, centralized or decentralized, 150 decisions, production and investment, 215 decision theory, 151 Defence of Usury, 153 deflation, 222 demographic factors, as limiting conditions of behaviour, 117 demographic and psychological variables, 123 ‘demonstrative investments’, 139–40 deposit money, see money in account depth psychology, 38, 231, n 47 Deutsche Bundestag (national parliament), opinion research on economic knowledge, 158, 161–3 differential representation of taxes, direct extrapolation, 212 disposable personal income, 217 division of labour, between man and wife, 56–7 DIVO-Institute (Frankfurt), 106 psychological variables in, 96–8 economic behaviour research, and psychology, 35–9 economic decisions, in households, 208–9 economic development and attitude, 147 and behaviour, 144, 146 and incentive taxation, 198–209 economic forecasts, 218 economic growth, 205 behaviour theory concept of, 141 economic man, 18, 31, 230 n 20 economic prediction, 32–3 economic prognosis, 211–19 in communist countries, 214 economic psychology, 17–48 economic research, 27 economic thresholds theory, 163 education, 145–6 and attitude to price and currency developments, 108 and consumption standard, 128 and ownership of consumer goods, 127 and the psychology of saving, 100, 103 ego, in works of Adler, 38 election forecasts, 218 electric power sector, Germany, 213 Engel curve, 125 entrepreneurial behaviour, 136–49 formation of, 148–9 and independence, 141 and market economy, 155–6 motivation for investment decisions, 138 and national character, 141, 142 overreaching of abilities, 140 and underdeveloped countries, 143 entrepreneurial decisions, 150 entrepreneurs, 205 attitudes to, 154–5 leadership role, 153–4 as a motor of innovation, 153 and rationality, 151–2 and risk, 154 role in the economy, 149–56 role of, 136 equipment level, and household size, 132 ethnocentricity, 143 Europe, tax systems, 195–6 expectations, 92, 119 and monetary decisions, 108 regarding the general economic trend, 133 and short-run consumer behaviour, 133 extrapolation method, 212–13 Fascism, 158 fashions, 23 fear, 37 Federal Republic of Germany, social market economy, 150–1 financial management, and financial assets, 53 financial mobility, 109 ‘financial psychology’, 36 ‘fiscal policy’ theory, 42–3 fiscal psychology, 41–2, 48, 157–64 and public loans, 163–4 forecasting, 211 and government policy, 219 and human behaviour, 215 and investment programmes, 215–16 uncertainty in, 217 forecasts economic, 218 election, 218 German electric power sector, 213 of sales of goods, 216 German historical school, 2, 35, 40 Germany attitude to tax: by education, profession and social stratum, 188; by gender and age group, 187 electric power sector, 213 self-employed, 207–8 tax mentality, 166–7, 186–92 tax morale, 171 tax system, 194 view on tax evasion, 10 gold, 121–2 government policy, and forecasting, 219 Gresham’s law, 41 group norms, and saving, 100 growth-oriented tax policy, 204 habit, and monetary transactions, 102–5 Harvard barometer, 213 hedonism, 28, 29, 30, 36, 229 n hire purchase, 69 historical school, 2, 35, 40 hoarding, 220 holidays, spending on, 76 homo economicus, see also economic man household budget, and rationality, 77–89 household budget management, goals of, 85–9 households, 49–135, 64 agreement of partners, 62 calculation: and subjective liquidity, 84–5; and wishes discussed, 86–7 cash budget management, 55 cashless payment transactions, 55–6 credit, use of, 61–2 discussions about money, 59–60 gender-based division of roles, 55, 234 n goals of budget management, 85–9 head of the house and the housewife, 49–56 how money is managed in, 49–56 income and behaviour, 62–9 income expectations, 66–7 joint preferences, 56–62 major purchases, 61, 78 managing deposit money, 55–6 money management by profession and income groups, 52 non-cash payments, 56 non-core family members, 63–4 rationality and the household budget, 77–89 single-account households, 53–4, 55 single-person households, 50 ‘strong’ households, 54–5 subjective liquidity, 83–4 thrift, 58, 60, 69–77 with two accounts, 51, 53, 54 use of calculation, 80–3 women’s role, 57 household size and consumption standard, 130 and durable goods, 129 and equipment level, 132 housekeeping, 49–50 shopping lists, 79–80 human behaviour, social element of, 18 ‘human factor’, 28 Ifo-Institute of Economic Research, 217, 218 incentive taxation, in economic development, 198–209 income and behaviour in households, 62–9 and consumption standard, 125 and consumption taxes, 195–6 and ownership of consumer goods, 127 and protection from taxation, 208 and socio-economic status, 65 income allocation, 92 income expectations, 66–7 and debt levels, 70 influence of income and age over, 68 influence of positive income experiences, 68 positive and negative savings, 69 and purchasing decisions, 100 income theory of money, 91, 221 ‘index of consumer attitudes’, 217 ‘inducement mechanisms’, 210 ‘industrial climate’, 26 inflation, 107, 163, 222 innovation, 145, 153 instalment credit, 116 instincts, 33, 36 institutional constraints, 117 institutionalism, 33, 35 interaction terms, detection, 123 interest rates, 46–7, 108, 117, 118 International Association for Research in Economic Psychology (IAREP), international liquidity, 89 international money markets, 122 intrinsic motivation to comply, Introduction to Social Psychology, 22 investment, prestige motive in, 138–9 investment decisions, and earnings expectations, 138 investment programmes, and forecasting, 215–16 investments ‘demonstrative investments’, 139–40 inappropriate, 139 joint preferences, 56–62 Journal of Economic Psychology, ‘Juliussturm’, 162 large economic units, 20–1 life cycle and aspiration, 132 and consumption standards, 129, 130, 132–3, 237 n 77 and earning and spending, 129 and equipment level of households, 128–9 liquidity objective and subjective, 224 and pessimistic business expectations, 226 and spending decisions, 108 liquidity preference, 36, 38, 102, 108, 223 liquidity theory of money, 219–28 location, choice of, 137–8 location theory, 138 Lonely Crowd, The, 23 longitudinal studies, 62–3, 66 luxuries durable goods as, 125 and thrift, 76 macroeconomics, and psychology, 211–28 major purchases, 78 planning for, 79, 80 Man and Modern Time, 17 ‘man as a social being’, 17–26 manufacturing industry, added value in, 209 market economy and entrepreneurs, 155–6 function of entrepreneurs, 153 mental attitude, and age, 67 microeconomic causal analysis, 44 miserliness, 71–2 model approach, 94–6 monetary behaviour, limiting conditions, 117 monetary dispositions, 97 monetary policy and business liquidity, 227 and empirical research, 117–23 monetary theory, 32, 224–5 behavioural approach to, 89–124 consequences of empirical research, 116–24 and empirical research, 93–116 and prediction, 92 and the ‘specifiable condition’, 117 monetary transactions, habitualized, 102–5 money alternative forms of, 121 definitions of, 89–90, 92 as symbol, 92–3 theory of, 90–3 money in account (deposit money), 220, 224, 227 money illusion, 120, 121, 222, 225 money management, by professional and income groups, 52 motivated behaviour, analysis of, 92 motivational factors, economic behaviour, 148 national character, 146–7 Nazism, 158 negative perceptions of tax, 10 negative savings, 69 norms, 11 Norway, 238 n 10 objective liquidity, 224 objective rationality, 152 occupation, and tax morale, 172 occupational choice, 205 occupational groups and consumption standard, 126 income, and consumption standard, 127 optimism, 114, 120, 133 ownership differences, consumer goods, 127–8 panic, concept of, 37 pay cheques, 105, 118–19 personal freedom, 22 pessimism, 114, 120, 133 pessimistic business expectations, and liquidity, 226 Philippines, 204 planned behaviour theory, poverty, 197–8 prediction, and monetary theory, 92 prestige motive, in consumption and investment, 138–9 price development, 106 price rises, 121 price theory, 221 Primeval Man and Modern Civilization, 20 principles of taxation, 181 private households, see households ‘problem-solving behaviour’, 96 production and investment decisions, 215 profession and associations with tax, 190 and attitude to price and currency developments, 108 and perceived fairness of tax, 191 professional and income groups, money management, 52 professions, 51 profit maximization, 137, 138, 149 ‘profit motive’, 23 prognosis based in analogy, 214 for individual businesses, 219 ‘phase shift’, 214 via induction, 213 proportionality, 181, 242 n 50 psychic ‘thresholds’, 225 and economic behaviour research, 35–9 and macroeconomics, 211–28 and problems of motivation, 35–6 Psychology of Adjustment, The, 33 psychology of saving, 99–102 and age, 100 and education, 100 marital status of respondents, 101 survey questions, 99–100 psychology of taxation, 157–210 early studies, 193 public finance roots of, 158–9 and Schmölders, Günter, 6–13 public finance theory, 184 public loans, and fiscal psychology, 163–4 purchases, large purchases and economic habits, 75 purchasing decisions, and income expectations, 100 purchasing power, 220 versus value of money, 106–14 quantitative analysis, 221 quantity theory of money, 219, 221 Radcliffe Report, 223, 225, 227, 228 rationality and entrepreneurs, 151–2 and the household budget, 77–89 and tax justice, 183–4 ‘rationalization’, 140 rational reasoning, and tax, 199 rational theory, contrasting programme to, 26–39 ‘reconstructive imagination’, religion, 25 resource allocations, 151 risk, 154 role expectations, 146 Rowntree’s theory, 24 and budget management, 88 and character traits, 109 and group norms, 100 mode of payment by account type, 105 psychology of, 99–102 reasons for saving, by account type, 104 and social constraints, 100 surplus, 69 and thrift, 109 saving behaviour, tree analysis of subject data, 111, 112 saving mentality, 25 savings capital accumulation, 104 consumptive, 104 precautionary, 104 reasons for, 85 savings banks, 103 savings deposits, tax allowances for, 243 n 64 savings goals, 46 Schmölders, Günter and the Kreisau Circle, and public finance, 6–13 works of, 1–2 Schuldenmachen, versus ‘borrowing’, 114–16 sectoral tax exemptions, 204 selection, 21 ‘selective choice’, 29 self-employed, Germany, 207–8 shadow economy, and tax morale, 12 shopping lists, 79–80 short-run consumer behaviour, and expectations, 133 simulation, 123 and social simulation problems, 123–4 single-person households, 50 smuggling, 175 social prestige, 25–6 social psychology, 18 social representations, 8, of taxes, social science, and computers, 94, 96 socio-economic behaviour research, 39–48 ‘Socio-economic Behaviour Research’, lecture course, 47 Spain company taxation, 202 perceived variations of tax liability, 201, 202 tax system, 200–3 ‘specificiable conditions’, institutional constraints, 117 spending decisions, and liquidity, 108 spending policy of companies, 140–1 stagnant economy, 142–3 standards, 146 state, feelings towards, 9–11 strategic variables, 210 subjective liquidity, 109, 224 and calculation, 84 private households, 83–4 subjective value theory, 29 success motive, 148 surplus saving, 69 Survey of Consumer Finances, 97, 115, 117 surveys, 93, 122 and anticipatory variables, 119 need for new analysis techniques, 122–3 systems theory, 152 taboos, 22–3 ‘take off’ theory, 143 tax associations with, 9, 189: by profession, 190 attitudes to, 158, 196–7 change of emphasis, 197 incentive taxation, 198–209 indirect, 184 individual resistance to, 160 influence on behaviour, 196 negative perceptions of, 10 object-bound assessment criteria, 200 perceived fairness of, by profession, 191 principles of taxation, 181 and rational reasoning, 199 sense of imposition, 167–8 social representations of, tailored income tax, 203 upper psychological limit, 164 views on, 10 tax administration, ‘tax announcement effects’, 159 taxation, psychology of, 157–210 taxation of alcohol, tax behaviour, research on, tax burden, 166–7 ‘tax dodging’, 158, 161, 172–3 tax erosion, 197–8 tax evasion, 10–11, 175 tax justice, 178–86 attitudes to, 183 and rationality, 183–4 and voters, 182 tax mentality, 9, 42, 159–60, 165 Germany, 166–7, 186–92 in international comparison, 192–8: policy implications, 195 interview research on, 161 measurement, 197 tax morale, 9, 11, 42, 168–9 concept, definition of, 11 Germany, 171 and higher education policy, 11 as internalized obligation to pay tax, 12 and occupation, 172 ... status of respondents, 101 survey questions, 99–100 psychology of taxation, 157–210 early studies, 193 public finance roots of, 158–9 and Schmölders, Günter, 6–13 public finance theory, 184 public. .. thresholds theory, 163 education, 145–6 and attitude to price and currency developments, 108 and consumption standard, 128 and ownership of consumer goods, 127 and the psychology of saving, 100,... ‘thresholds’, 225 and economic behaviour research, 35–9 and macroeconomics, 211–28 and problems of motivation, 35–6 Psychology of Adjustment, The, 33 psychology of saving, 99–102 and age, 100 and education,